CHUY - Earnings call transcript Q3 2019

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Operator

Good day, everyone, and welcome to the Chuy's Holdings Third Quarter 2019 Earnings Conference Call. Today's call is being recorded. At this time all participants have been placed in a listen-only mode and the lines will be opened for your questions following the presentation. [Operator Instructions] On today's call, we have Steve Hislop, President and Chief Executive Officer; and Jon Howie, Vice President and Chief Financial Officer of Chuy's Holdings Incorporated.

At this time, I’ll turn the conference over to Mr. Howie. sir. ahead, go Please

Jon Howie

in and our By release. third found at also operator, have It everyone access be www.chuys.com website our to quarter on Investors good you, section. now, afternoon. should can the Thank XXXX earnings

of begin them. subject results future to today discussion therefore, detailed need of discussions filings what to remarks, we results statements guaranteeing and, operating We risks on forward-looking cause include numerous undue should SEC statements. that and Before uncertainties conditions. not statements formal our more all to of we of and for could are performance everyone financial that the not part I also refer are you put you review our actual These recent our will a from remind to risks These our forward-looking reliance differ that materially for impact expect. future could

I'd call the the like of turn out that way, With to Steve. to over

Steve Hislop

Good thank Jon. everybody you, and joining you us the today. afternoon Thank on call for

third Xth comparable with approximately shy increase just an adjusted are during in of pleased quarter posted by highlighted income quarter XX%. we our third and performance quarter net X% Revenues the restaurant grew sales. consecutive positive of We our

the continued our despite also labor a level operating rate XX XX.X% and We profit quarter. improved profitability margin increase inflation successfully commodity and restaurant-level in basis an with in during costs operating restaurant point higher increase

our our media with paid efforts, are campaign, marketing various include location-based growth to continue search, results top-line our to these advertising drive we covering and on place Starting mobile progress which paid see initiatives markets. of improved meaningful we believe We in all making continued marketing profitability. social from to and a put campaigns digital testament the progress we are sustainable

this targeted there improved to we April in of our as addition, experienced efforts began In marketing in have market sales benefit Houston campaigns year. continue results we our our since our

radio, signage third digital Orlando like quarter, targeted advertising similar highway strategic the marketing during Houston to promotional we YouTube, campaign Vue. our to on a and utilizing through by addition In and expanded Hulu platforms approach

Orlando, goal As a to fourth our our is better in we certain focus will we to drive the our campaign on each and quarter. on our to market our Dallas campaign here frequency Again, during educate Chuy's the quarter continue similar in restaurants. customers experience launch markets

in Our is equally effort in improve continued technology important our to our business. investment

to partnership improve will our we've management with During implementation the this services platform well to our capture our opt-in completed as intelligence. functionality to WiFi gather guests of table includes their Wisely, to the to to our visits us efficiency. help new us which can Since front-of-the-house third believe be we This addresses, online. that customer during quarter system-wide email as tied important ordering more then through we system added allow

additional be future personalized these to for use market to of as Ultimately, and offerings customers integrated intelligences we experience. will able a to two will platform quarter XX in available during out fourth be markets year-end, a markets strategy, we for By us off-premise loyalty foundation program targeted specific more third offerings the more regards allow catering to With to plan rolled a our quarter. our our markets. catering with two the during

year. to approximately in $XXX,XXX the compared For million revenue catering same third contributed quarter, in last the $X.X period

allow during access delivery us online to our direct third XXXX. two restaurants the partnership to the various also of synchronize our quarter rollout part system improved accuracy service this now continue been our test, standpoint, follow website. of have as to expand very Dispatch of feedback Olo. these on Early tested in From more by and the margin end quarter options positive ordering system-wide expect customers we Based sales. an for as process and During we this first fourth and stores order the we in a from quarter, will delivering and this an on efficiency with has operational will Dispatch to increase with to

of currently Finally, will into provider, the national contract system sale are point which in negotiating we the with delivery and more process much our integrate a make delivery third-party of then efficient.

me the you With on let plan. that, update quickly development

the one Carmel, quarter, Carmel, by restaurant was second Ohio the During of market we successfully in opening our followed which in in Indiana, fourth Columbus, quarter. restaurant opened

now development to in possible ability was plan XXXX culture made instill and a completed this for Chuy's short our six time. new the and our We team's have through development restaurants operators

traffic. balancing XXXX, similar to brand at an growth and building with awareness continue focus we new employ Looking by will development ongoing store on strategy

further developing psychographic We profile future forward we expansion and look our hard identify by a it to in new analytics top to our new development. us will estate successful plans of tool come our our which tool, real XXXX this work utilizing for from will in at in years and through been testing bolster base for allow customer created markets. our and to development the utilizing markets We've

this for long-term replace the core our to current ability our indicative will brand we of at program confidence in Finally, of new continue end repurchase shareholders. that believe have shareholders. quarter, XX, December gives that our capital We a to share that end that that to subsequent our was $XX for use Chuy's grow we set approved the through excess returns value also program million end, business, of our create commitment to a have XXXX flexibility of authorization To enhance to our a expire our board XXXX. runs is the the directors us strong the our additional sheet balance and to third

call more that, I'd of over turn to for results. to the CFO, the Jon like With a review our second quarter’s Howie, detailed

Jon Howie

$X.X total, XXXX million included operating quarter well by additional as check, X.X% weekly incremental weeks store for the X.X% XXXX. just partially in sales driven increase weeks in were quarter quarter third million revenue increased restaurant we compared offset last during the included not offset average X.X%. customers. incremental $XXX.X an by increase non-comparable growth. pricing third approximately was new of Revenues operating the third In X,XXX a to sales revenue mentioned. in ended Steve. in from Affective These $XXX.X restaurants XX, and decrease comparable increases from quarter the quarter Thanks, average Comparable the as during during The partially to by million September decrease restaurant increased primarily same approximately in XX that sales in had X.X% are year. was

through to XX cost in and expense third produce, to all discussion driven Turning grocery. selected was of of basis a unfavorable as the pricing beef XX.X%, offset by chicken and by of points items, commodity approximately favorable quarter line partially percentage dairy sales in revenue a X%. increased All inflation pricing

at of expected cost quarter. Operating at of the and for hourly produce to XX.X% percentage labor as This new pricing, lower compared last labor a mini of expense X.X%. XXX year's X% training to leverage, comparable a decrease decreased we approximately to revenue partially basis fourth quarter X%. on as price of With expect due points XX.X%, Labor openings efficiency in new approximately managers. inflation commodity in approximately percentage held rate revenue stores increased our cost steady the store is inflation primarily to offset by

national expense costs discussed increased rental we offsets by higher points our partially occupancy a higher administrative and basis quarter Marketing points in to opened decreased as primarily by revenue same marketing an XX XX well based taxes. restaurants related X.X% X.X% costs million basis performance salaries increased percentage compared Occupancy increase as percentage the at earlier. expenses. level driven revenue well $X to million sell, our expense and fixed ongoing and as as markets larger a newly real initiatives Steve management General of as leveraged bonuses on in certain expenses $X.X in as the driven technology and estate as professional, as to legal to higher last year, by higher period third of

equal in $X.X In the compared the of net for share, was per share, year. quarter of per million or $X.X $X.X per or XXXX. net and diluted five loss company period diluted associated same recorded or of of loss summary, two $X.X of restaurants at $X.XX assets costs non-cash first $X.X restaurants which a of a million tax million, million, included to closure impairment net to of to loss with The of a $X.XX quarter closed the million, share, $X.X $X.XX related million last diluted loss XXXX third in

million per assets quarter at During record XXXX, related to of to six the we the million, of diluted XX% we of We have non-cash debt. quarter for XXXX income the quarter $XX share million net on restaurants. or equal income net last tax per from $X.XX loss of Adjusted per share million $X.X impaired third period million balance net share third $XX.X XX.X% currently $X.XX diluted to also to ended increased per $X.XX $X.X $XX.X and sheet increased a of from same the year. share with the cash no and in

that, review With outlook XXXX. now for we will our

of from $X.XX. per XXXX $X.XX be earnings and to XXXX range per previous our adjusted share We raised and expectation $X.XX earnings share for $X.XX. our have between to $X.XX adjusted This of compares

updated to is a the restaurant assumptions. range X.X%. for year of X% X.X% now the previous sales guidance expected to growth on following We versus based Our had X.X% comparable of

$X We expenses continue of to approximately expect a restaurant pre-opening million.

$XX.X million from a million range We $XX.X expect G&A to $XX.X expenses million. $XX.X previous between million and of

rate of weighted million and shares. or X% effective X% approximately tax million shares between – versus previous to XX.X to XX.X is are expected to a modeling X% we average range diluted to XX Our range X.X million of outstanding range a of versus X% annual

We new plan projected lastly, the expenditures to improvement completed And XX million. net $XX continue for and capital million restaurants be allowances our tenant which of have this development opened between year. our six year,

turn wrap I'll to back up. call that, With Steve to the

Steve Hislop

the while should long for initiatives drive are opportunity have in of have we the to a more ultimately shareholder Thanks, have we development value. operations, we period as do, Jon. clearly healthy profitability, we to results company now run. the disciplined still Together restaurant in strategy our improve laid and The have a foundation producing a long-term further work with place which

of success of none have hard been Lastly, work would and Chuy's dedication the without our our employees. possible all

With are you. any answer that Thank to we questions. happy

Operator

will first question-and-answer Our comes [Operator Instructions] Inc. ahead. now Stephens go Please with Will begin session. Slabaugh the question We from

Will Slabaugh

quarter. Congrats on Yes, guys. the thanks

Steve Hislop

Thanks Will.

Will Slabaugh

days XXX these see often don't dropping We labor. bps on year-over-year. first Yes,

else you're with So I add? about efficiencies, agree standpoint improvement anything that played of from pricing or into your to I'm that to thinking sure new store labor efficiencies, how wanted curious you the was

Steve Hislop

we a in Well, of a you had haven't leverage while. lot I leverage, lot the of is – tell a like that this

half mainly quarter, the last hourly said the last like last thing year we in other in we opening new continue less. work last half significantly comparability is year The the on is efficiencies to of restaurants. this of versus And and openings

And is was XX But we the so, MIT labor XX there was we efficiency saw in of in points management the openings. basis in some hourly about trying where in where regular basis then training, then points which labor. we're And just was just about to expecting most and of bars. rest were the of it decrease reduce most

we progress And progress going. are that place fruition. seeing I But yes, last forward we the that some there. keep to to or working starting to over thing So two we're is come put the year in mean,

Will Slabaugh

with like Wondering Great. little the And campaign you're saw Houston you more sounds I bit if pleased ask well. market. It results as you marketing marketing a the talk pretty in you want the could from about that. to about

you're Dallas? successful able Or much? of Orlando best that if to what and into If there sort not too move and discern was difficult it's versus as tell then to what works

Steve Hislop

as as do the margin and extra cool a and and it see little in specifically again, what's Houston we're us about market. digital, doing already little it a quarter long-term for the starting and isn't And that able do key working, us same. you key as look the been a gives but over The can working, slower, that's for social long-term all Orlando what boost, – – target then really paid really social mentioned. But we’re what's and and exact been it to we has as digital that's gets you we’ve to lot a touching of the the starts And switch. we've a paid we goes the but to did can like build one markets. And it with the that's slow that's it in and what we've what been do

you in And again, before. until push of last never, really – that much we've done never December on year social remember, if any we've

thought front of in. we've differences the frequency on gotten the time out year get first of guest people and the in defining really the some of really is our this has So and this or worked introduce

again feel pretty what So it, but pivot working, we move excited can about and is we something we're working. isn't that into immediately

Will Slabaugh

you. Thank Great.

Steve Hislop

welcome. Very

Operator

Our Please next question comes go from David Tarantino with ahead. Baird.

David Tarantino

afternoon. up from on for growth comps is good to Hi, quarter. step last of was check first the Jon, stepping question related up. the looks average like it the My third most quarter

could average stepped quarter. I was check you up explain So wondering why if versus last the maybe

Steve Hislop

related go going that drinks new been is our very well, And and and really secondly, new it points some mean in our end about in we Sure. menu. and of most was up basis drinks tequila David that's have I bar. mix. was then driving on to a premium We're bulk so the of the had mix that to catering our lot XX trying these there that bar

X.X So I related price our without think higher did we tier we anticipated, on a increase more in is projection price, we little lot took right bigger in that to the a had that's little the for tier stores. and stores roll those which pricing, around but we've mix and a four than three comp when we’re

driving kind that's So what's that X.X. of

David Tarantino

component, Jon into mentioned, that quarters? as the you is next of think over carry couple you that something mix And can the

Jon Howie

by bar the quarterly think really our I driven is promotions.

well. out they're we'll get try pricey, those to but to so it sure – very to we going hand, can. when are don't really These a bar we continue want drinks sales And make we so little them that of drive

until we'll them some continue we doing pullback. get So

Steve Hislop

have Yes. And we the do drinks. year them same we quarter where usually bigger in every

larger So you'll you'll our consistent promotions in that quarter, us bar. drink the then with probably normal see then a stayed every and approach us probably have third And with see And markets will rise to like continue two go. every bulk. catering add the vans. to quarter with two as – increasing the we And continue to the we’re obviously stores as bulk the

David Tarantino

is then watermark maybe historically. I pricing, think we've X.X versus And on it. seen Got what a high

but that and running – me the that inflation might So if if in not correct businesses. Jon, wrong, the maybe – I'm be of what I'm total ahead

are factor? just especially plans So about what philosophy what you your on for the think that as year we’re is pricing, next wondering on

Steve Hislop

Hi, this is Steve.

– on around we what the years, until time the it the mix then changes is right. X.XX and obviously In around continue was paper, we've we to XXXX and to we X.XX X – bears ours. do one that averaged the You're last and XX probably we moved at What This around just X. right it all value market want look up. be in every market to

During doing spread our to got years value X, actually larger all that we in were our and larger those the X.XX years only tiers. through

some So room compared to competitors. had we our we felt

plus value, in As the plus in on that the you'll but where at X above marketplaces we the be you'll see that us year. – X depending forward, probably want where probably moved X, see we're X number to in us competitive we upcoming

David Tarantino

has the But then slightly then a are what keys thinking around all I on related aren't that… industry to to I and And positive are maybe flat Traffic negative it. this topic. or that one know guess been getting the great. Steve, conditions Got back you

Steve Hislop

Dave, I'm go sorry, I – ahead.

David Tarantino

No, I'll you sorry. let respond.

Sorry.

Steve Hislop

market into our for our tourists we're for talked because it going is obviously stores where ton I'm and to to last do and what Yes. new done of approach four go us as we've even outside years dive our a the marketing two how The continue especially we've and of our kind always to us this we walls, to with our we learned the and what restaurants and in more properly second learn is key is and existing bit year year that's markets. into as we're looking a execution, and walls little expecting we've to four

supposed at day, But to. to back the end into is restaurants, restaurant – we the our a industry of the hospitality like the put want

at grow, look sure staffed to maintain. we staffed hospitality So we're to and want making not to

going four right, to our been within the that real those sure service the things. the we It's within we've are efficient, main need up. levels While make walls. And are

We have doing our executing competitors stuffs the do to know about of long-term we that will some not and worry are works for that crazy and our us. deal

Jon Howie

you look because end this existing was David, our four if in that beating quarter of and traffic, from I kind you the as the that forward noise, And base but of And I'm take points. definitely traffic, happy, last our if we're last our the basis about moving that at XXX year industry to I we're well. we're not casual think, three all averaging in at compared which at to in we're they mean average of been they've stores comparable year, X% headwind saying to dining look down close average down that out the

Steve Hislop

difference And sure bulk counts that the in X.X making to XXX,XXX million looking between and getting also we're right apples-to-apples. the catering bulk is sure make on that we're

David Tarantino

much. Got right, thank you it. very All

Steve Hislop

Thank you.

Operator

next comes go Our ahead. O'Cull with Please Chris from Stifel. question

Chris O'Cull

Thanks. maybe Jon, there seems in comp you for that expect here guidance the the outlook? Is comps reason quarter. any fourth slow indicate to to

Jon Howie

We been just a and ran little comparable we're to pretty it's been that, bit it but running a still at but what X.X% X%, and I we've not down of so consistent. because just above brought running; little,

it If the period-by-period you look consistently for QX, between – and was at period each X.X% X.X% for period.

Steve Hislop

pretty I Series. are my and We A the told that the optimistic Jon, for we World in in right stores World as the where Boston Nationals down. still, quarter. have help in for Houston third Red expectation little had seven us having Sox I'm didn't in have bit game the It Series

year weather had quarter. this a bit tiny south last of had the we first where that month the affected for little good bit down then And real us. a in we hurt cold that us weather So of

be should have that the very in right similar So trends been there,

Jon Howie

Yes.

Chris O'Cull

Okay, planning partnership if helpful. sign what a together? I Help also then a benefits, of delivery explain product guess And provider? to implementing me can with how works that's Dispatch the that you understand are you're the third-party

Steve Hislop

third website our order Well, to provider I to Chuy's. dispatch people their the that to obviously Chuy's. want party the to go to order website mean We them come

charge the then for pickup and to When okay an ask or the delivery, website a offset taken that takes the is that will actually most place auction they and our they charge say that the they can total so will delivery to dispatch up and then asked third for delivery we party delivery. – So services of customer the and dispatch. come delivery charge for the

integrated one And obviously also so to also where margin, efficient delivery third and straight offsetting party I our there. their out costs, so website – it since kitchen, our we're drives it's thing to forgot, because whole iPad are then an on dispatch third obviously everything. that it it versus also driving higher and get still is using it it parties the a we it’s more can the but right goes that people And also, kitchen, into information

Chris O'Cull

if point be looking are And so at you using fully or to, it'll your you third that is have today? also do to Chuy's that of third So sale expect mean a third execute? operationally system with with partnership party that easier first, – you're integrated I aggregator, provider then it a party offering

Steve Hislop

Yes.

The the of Olo, they'll through So national setup to provider them stores. rest it's It'll integrated. it that contract But is once talking not as over already through is of it that be well. provider we're integrated rails get the XX be since sign take currently actually product the will way. our for the we the already

Chris O'Cull

associated next And to a initiative would for Is off money opportunity partnership. suspect Is take to some – is then that would see or that some I channel you an sales sales really true? promotional year another of with get that with there sort growth?

Steve Hislop

But signed we want some much with When yet, launched too dollars that because them some this Chris. it correct. – them are there some are we launched marketing are there go mean, put when opportunities to behind we that. I don't into with You haven't that I to

Chris O'Cull

guys. Thanks great. Okay,

Steve Hislop

Thank you.

Operator

Setyan Wedbush ahead. Nick next Please with comes question go Securities. from Our

Nick Setyan

marketing... Thanks. Congrats on another great quarter. The

Steve Hislop

Nick. Thanks,

Nick Setyan

go going to thought good is to as Is XXXX? the step-up marketing step-up into this is year – really marketing step-up other having some we The there any results. maybe clearly having

Steve Hislop

where you'll have stay see yes to work NOI And Nick, X.X%, have we that we a to that right Well, about sorry around probably probably the what process. us right meeting everything I'm of actually; see year. within did what I see didn't we coming going but big us probably focused really that, review you get defining ROI you'll spend will we're on around and last think this up first

So we sales. still it's it might but being within X.X% spend differently, that of

Nick Setyan

inflation but that lot the be it. less, conversations Got terms next does around commodities Obviously, of going early It's that least it in inflation great bit be to at and year. hear XXXX more of inflation been year, scary to any there's is might is a commodity manageable? a looking a QX little on signs or early

Steve Hislop

beef the now, prices next of in I we the XX it no about not think year. protein or and going drive locked the the in right and flu big of maybe other year, year a at with these some to is decent months we've mean end think to got pretty I I mean that that, protein how through prices, the item on matter everybody or swine that indirectly how anyway, our it's beef pork rest clear comfortable is of but biggest out our and the high feel I is scare through comfortable China through pretty heat up talking – with goes, menu we're ground there

pretty feel that. So good at we

drives and Nature that's that driver produce. that And sales keep not can always because manageable upon of one in. think with that dependent lock that to I X% that on – our that's we qualifying cost X% do produce the we it in and Mother really big

Jon Howie

that, have but might we bit might chicken we a good little We still it. pretty because have – little bit a of about on feel the

Nick Setyan

still expecting XXXX loaded a just Are cadence? we And it. opening pretty last question. kind Got front-end of

Steve Hislop

We are.

are. We

Nick Setyan

you. Thank it. Got

Operator

comes [Operator ahead. Strelzik with Please from Capital Andrew Instructions] Markets. next go BMO question Our

Andrew Strelzik

I the you some guess, the out, weather that we a the have in to headwinds wanted I some curious some comments markets. as sense I'm before. seen all an is do whereas improvement that I'm the the from roll headwind? afternoon. maybe that marketing, in But any that guess it's other trends traffic good there? I that the of you Hey, given revisit traffic with more haven't I of surprised and of and is less but removes traffic not understand little impacting impact recognizing catering that you next of pricing the into maybe having of your year incremental And maybe trends an of pricing component some called

Steve Hislop

think which about again, is said the difference was biggest now, Right better than the what year. it Jon prior is I X%,

that I chipping key at is we the market I have of in will been I believe, our it and and market think are. keep going what don't be and every am, the away value which to price every we're one best increase, just again, still enabling this

on had year-over-year. and amount of not any price that increase thing us change the – done we've the any been have has of we catering So for us information big bothered that's

Andrew Strelzik

kind so Okay. I'm your kind gleaned to, that the you've of Thank And mind loyalty will early you. customer are that been or that tidbits to there've interesting lead of you've or now? of which far? you curious data ultimately on any of And collecting, some that any then program, been from – data if able of itself learning’s surprises the

Steve Hislop

XXXX. year roll only before now; we've on been Olo completely few and been of stores really in Again, of be it's a have that and the information going more two ordering to really be when out quarter to rolled and starting and it also out first the end at we'll of mining we'll the the end dining. That's what probably [indiscernible] to it in-store we're use

more and know completely But that get and got so to to do we emails marketing we'll ways a individual implemented. people. had then have what we'll targeted we So forth, they've so little can the

Andrew Strelzik

much. very you Thank Understood.

Steve Hislop

pleasure. My

Operator

Raymond Vaccaro Please Brian next James. Our comes with ahead. question go from

Brian Vaccaro

evening. Thanks. Good

the you newer Just on cost and versus comments saw you color then the wanted and to you on circle Any or would willing back the a your little that quarter-to-date Texas be on regions quarter? provide could more through conference? on cadence to comment market

Jon Howie

Like cadence consistent, were Brian. very saying X.X. during was we before being basically being QX the low X.X, Sure, high

markets other the it those the see working very, our We around in Houston. of underlying still especially some like consistent the participants is trend there. one bigger away, some World than of that our and softness and was other the very underlying there, have We the markets than take Series softness since being is two So Steve still, saying, but during quarter. did is third trend

Brian Vaccaro

Okay. And would or? you comment on quarter-to-date

Jon Howie

I I Series. for X.X% mean, say World softness period the it's some of believe the I’ll just Yes. of yes. with because XX

Brian Vaccaro

Okay. All right.

of if deliberate? mix sorry was it. missed And that I what But the and how much off-premise sales in the was quarter

Jon Howie

about XX.X%. that. of was it Delivery X.X% XX.X% about averages and about increased off-premise The Sure.

Brian Vaccaro

back you. might you also hospitality to to then update could wanted or perhaps you opportunities where curious where an comments or turnover? there. great. something see add and or on Okay, Are around else on markets and And there certain Steve, I service Thank units circle drive hours handhelds provide utilize your you

Steve Hislop

and is the testing Sure. at taking XX% five-year be floor like little the we're that our And making think around What on they'd everybody opening probably the customers, work hourly hospitality care turnover in were looking way lowest that's all sure taken at going salesmanship is Great, simple at question. efficiency and the really Great. a It's on. which just to time. can door, it's bit low. And there. and of always keep table to we're a on way stuff to a our off. at the get care handheld we're long constantly the even greeting, We servers looking at help we the to of and a at and more looking is out a pay work a simple the

So our rates stores. in retention we're our pleased with

Brian Vaccaro

very right, Thank great. much. All you

Steve Hislop

Welcome.

Operator

ahead. Our Please Derrington Telsey. with Bob comes question next go from

Bob Derrington

the grow that until think to Yeah, traffic system thanks. get said once I back Steve, positive. you're to you, really not planning you

other estate tool as about the hand, that How encouraging future? know On reconcile pretty do look the be into good to we new finding looks real those two site. your I you

Steve Hislop

Bob really to Well, and is, on we're we'll as the I basis. mentioned thing on the estate process in still be on a roll out store-by-store key XXXX the in testing real tool, probably that that

still estate. sure of the not on testing us. mode good piece we're save make making all; than real the one just it's And in and So – puzzle a decisions, it's again, another given that actually that's by we're

it's all, to a go it's piece into but there. save add key that element So psychographic not and from it to

and customer us key customer, The us to we up is we positive us and that and XXXX working you'll We to be why we it'd things happen we in that be going the to we our see also Jon is this a right are that the year in integrated for be similar continue we period make or I whether the more really we're do believe time year. to what stores hopefully, ramp Wisely want direction move initiatives lot to of up. the to before for into want in the back said number that get have look for business at, that's lifeblood long-term of count a for about, up need and really direction next earlier, on in talked and to we really

Bob Derrington

like this kind bit that a line have that little a encouraging big wondering good just to traffic's to of really is you or listen I'm negative, in some had not and a deal. the have trends You've it's sand if

may future So increase better negative. a is the reasonable still with that could selection even traffic site skosh it development be though in

Steve Hislop

things a at on stranded strong Bob it see the You but look but stubborn, on count. fairly know other that time, table trend, I to customer need a I'm particular we'll at me,

Bob Derrington

Got the charge follow-up now new And believe stores a during you. or quick on impaired? impairment were was it there this five that have five, quarter I been

Steve Hislop

Five restaurants.

Bob Derrington

see likely, those? some And that is closures it of Steve we'll

Steve Hislop

but it closures that of one of time I'll to have big not the that. resorts Bob, we discuss the to to continue these respect until last our store happen, in that store going of close out at a leave a to point at is so look thing, mention we're just stores' closures and or would employees, that and

Bob Derrington

I'm operating so of can stuck what I within those find well they a some businesses? there to guess there a is, are you speak? within in the pretty is improvement – that rut, trends, wondering kind plan Are

Jon Howie

the we're I with like was some No, of Fajita of some finding our improvement on Wednesdays... some saying I mean the Taco and priority Tuesdays stores

Steve Hislop

margaritas. our And

Jon Howie

margaritas. And

some decision and So that will sure closed, to is like it Steve drive think and need the there make finding and that we – assess be I store that. again ways don't has said, that we make we time margins. But that don't sales there at to right a we're prolong

Steve Hislop

Yeah, make capital the and using just human properly. sure we're

Bob Derrington

guys. Got you, okay. Thanks,

Steve Hislop

Thank you.

Operator

over turn remarks. like would This our I closing back Hislop session. conference question-and-answer the any to concludes for Steve to

Steve Hislop

appreciate much. continued and so and be and thank a your you Chuy's any I good you Jon interest answer questions. evening. Thank have Again, in available to and we’ll always all

Operator

The conference attending is presentation. you for now today's Thank concluded.

disconnect. You may now

Chuy's (CHUY) 7 Nov 192019 Q3 Earnings call transcript